Southwest Airlines (NYSE:LUV) Price Target Lowered to $50.00 at Citigroup

Southwest Airlines (NYSE:LUV) had its price objective trimmed by Citigroup from $55.00 to $50.00 in a research note published on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the airline’s stock.

Several other brokerages also recently weighed in on LUV. Barclays boosted their price objective on shares of Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Raymond James Financial increased their target price on shares of Southwest Airlines from $55.00 to $60.00 and gave the company an “outperform” rating in a research report on Monday, July 6th. Morgan Stanley lifted their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Weiss Ratings raised shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday. Finally, Argus decreased their price objective on shares of Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a research note on Friday, April 24th. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and an average price target of $49.55.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $45.19 on Friday. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.41 and a current ratio of 0.49. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The firm has a market capitalization of $22.09 billion, a PE ratio of 27.72, a price-to-earnings-growth ratio of 0.37 and a beta of 1.12. The stock’s 50-day simple moving average is $46.01 and its 200-day simple moving average is $44.29.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. As a group, equities research analysts forecast that Southwest Airlines will post 3.67 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a dividend of $0.18 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.6%. Southwest Airlines’s dividend payout ratio (DPR) is 46.45%.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors have recently modified their holdings of LUV. SHP Wealth Management acquired a new stake in Southwest Airlines during the 4th quarter worth $25,000. GHP Investment Advisors Inc. acquired a new position in Southwest Airlines in the fourth quarter valued at $26,000. Entrust Financial LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $26,000. Los Angeles Capital Management LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $26,000. Finally, Optima Capital LLC acquired a new stake in shares of Southwest Airlines during the fourth quarter worth about $27,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Key Southwest Airlines News

Here are the key news stories impacting Southwest Airlines this week:

• Positive Sentiment: BMO Capital Markets raised its price target on Southwest Airlines to $60 from $58.50 and reiterated an outperform rating, signaling confidence in further upside after the company’s earnings beat. Benzinga report
• Positive Sentiment: Barclays kept a buy rating on Southwest Airlines, reinforcing the bullish view from analysts following the airline’s latest quarter. Barclays article
• Positive Sentiment: Southwest reported second-quarter adjusted EPS of $0.94, well above estimates, and record quarterly revenue, showing improved earnings power and solid demand. Yahoo Finance report
• Positive Sentiment: Several earnings recaps highlighted stronger fares, commercial gains, and margin expansion, suggesting the company’s transformation efforts are starting to show through in results. Zacks report

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.